stock option

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stock option

n. the right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option must "exercise" the option by paying the agreed upon price and requesting issuance of the shares. (See: stock, share, option)

References in periodicals archive ?
In panels C and D, the dependent variable takes the value one if the firm announces an 'employee stock option plan' for the first time during the observation year and zero otherwise.
The CPA suggests an employee stock option plan, offers to hire the attorney, prepare the documents and find a bank to finance the transaction.
Under this new employee stock option plan, the maximum total number of stock options issued is 910,000 and they entitle the owners to subscribe for a maximum total of 910,000 new shares in the company or existing shares held by the company.
The vote is certain to approve the $8.2 billion deal engineered by Chicago real estate mogul Sam Zell to take Tribune private through an employee stock option plan (ESOP).
Consider a business, Example Company, with the following characteristics of its employee stock option plan:
Citing the settlement agreement's substantive language, it found that the payment was made partially to settle all claims that the former CEO had or could have against the taxpayer and its directors, officers, employees and agents, as well as the employee stock option plan committee and trustee, and partially for the former CEO's resignation as a director, officer and employee, as well as a release of the taxpayer from its obligations under the employment agreement.
Since launching an employee stock option plan in August 2001, Harps Food Stores has paid back $20 million in debt, said Roger Collins, president and CEO of the Springdale-based chain of 46 supermarkets.
If an employee stock option plan satisfies all of the following criteria, the plan is not compensatory:
Section (20)(10)23(5) provides that section "404(k) dividend distributions, reported on Form 1099-DIV, are not subject to penalties." The Draft explains that these "dividends "are not true dividend distributions reportable under IRC Section 6042, but are actually Employee Stock Option Plan (ESOP) distributions reportable under IRC section 6047."
Swedish game developer and publisher G5 Entertainment AB (STO:G5EN) reported on Wednesday that during July 2018, a total of 21,700 new shares were issued as a result of the subscription of warrants issued under an employee stock option plan, adopted at the Annual General Meeting on 20 May 2015.
Lisa Chedekel of the Courant, a 14-year veteran, also offered uncertainty, especially with the new employee stock option plan. "We are sort of in the dark about what it will mean," she told E&P.
of Fayetteville, said he will offer an employee stock option plan in 2003, but he likely will retain majority ownership of the company, which owns Jose's Mexican Restaurant and Bordino's an Italian restaurant.

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